HomeMy WebLinkAbout04-11-18 Board PacketOTAY WATER DISTRICT
SPECIAL MEETING OF THE BOARD OF DIRECTORS
DISTRICT BOARDROOM
2554 SWEETWATER SPRINGS BOULEVARD
SPRING VALLEY, CALIFORNIA
WEDNESDAY
APRIL 11, 2018
3:30 P.M
AGENDA
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF AGENDA
4. PUBLIC PARTICIPATION – OPPORTUNITY FOR MEMBERS OF THE PUBLIC TO
SPEAK TO THE BOARD ON ANY SUBJECT MATTER WITHIN THE BOARD'S
JURISDICTION BUT NOT AN ITEM ON TODAY'S AGENDA
5. DISCUSSION DISPOSITION OF SALT CREEK GOLF COURSE
RECESS TO CLOSED SESSION
6. CLOSED SESSION
CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to California
Government Code section 54956.8
Property: SALT CREEK GOLF COURSE
525 HUNTE PARKWAY
CHULA VISTA, CA 91914
Agency negotiator: General Counsel
Under negotiation: Disposition of Property
RETURN TO OPEN SESSION
7. REPORT ON ANY ACTIONS TAKEN IN CLOSED SESSION. THE BOARD MAY
ALSO TAKE ACTION ON ANY ITEMS POSTED IN CLOSED SESSION
8. ADJOURNMENT
All items appearing on this agenda, whether or not expressly listed for action, may be de-
liberated and may be subject to action by the Board.
The Agenda, and any attachments containing written information, are available at the
District’s website at www.otaywater.gov. Written changes to any items to be considered at
the open meeting, or to any attachments, will be posted on the District’s website. Copies
of the Agenda and all attachments are also available through the District Secretary by
contacting her at (619) 670-2280.
If you have any disability which would require accommodation in order to enable you to
participate in this meeting, please call the District Secretary at 670-2280 at least 24 hours
prior to the meeting.
Certification of Posting
I certify that on April 9, 2018, I posted a copy of the foregoing agenda near the regu-
lar meeting place of the Board of Directors of Otay Water District, said time being at least
24 hours in advance of the special meeting of the Board of Directors (Government Code
Section §54954.2).
Executed at Spring Valley, California on April 9, 2018.
/s/ Tita Ramos-Krogman, Sr. Confidential Executive Secretary
STAFF REPORT
TYPE MEETING: Special Board Meeting MEETING DATE: April 11, 2018
SUBMITTED BY:
Joseph R. Beachem,
Chief Financial Officer
PROJECT: DIV. NO. All
APPROVED BY:
Joseph R. Beachem, Chief Financial Officer
Mark Watton, General Manager
SUBJECT: Accept Staff’s Recommendation to Expend No Funds to Maintain
the Salt Creek Golf Course
GENERAL MANAGER’S RECOMMENDATION:
That the District expends no funds to maintain the Salt Creek Golf
course.
PURPOSE:
To direct staff to expend no funds to maintain the Salt Creek Golf
course.
ANALYSIS:
Time Frame: While a lease of the property would require less time to
finalize, staff has verified that a leasehold interest in a golf
course property has little or no value (See Attachment A). Without
the viability of a lease, and without the need to hold this land, the
District should be using a time frame of a minimum of many months up
to a year or more to determine the future use of this property.
Greens: Based on the likely extended timeframe to evaluate and
finalize the use and sale of the property, the cost to maintain the
greens for approximately 7 months is expected to exceed the cost to
restore the greens at a later date. This is based on estimated costs
to restore the greens of $38,725, and a monthly cost to maintain the
greens of $5,333. These estimates are provided by a Licensed
Agronomist (See Attachment B).
Fairways and Tees: Again, it is likely that the extended timeframe
of the evaluation of the use and sale of the property makes the
maintenance of the fairways a speculative investment. Based on an
estimate provided by a licensed Agronomist, the cost to maintain the
fairways is $9,333 per month (See Attachment B). Pumping costs add
an additional $4,000 a month. The District would also need to manage
the invasive species that would thrive with watering. The District
maintains a Habitat Management Area (HMA) immediately next to the
golf course. The quality of the HMA would be put in jeopardy with
the unmanaged growth of the invasive species. This is expected to
cost as much as $5,000 a month bringing the total estimated monthly
maintenance up to $18,333. The cost to restore the fairways at a
later date is $167,200 (See Attachment B). Therefore, the cost to
maintain the fairways and tees would exceed the cost to restore them
after 9 months. Again, it is likely that the extended timeframe
makes this a financial burden to the ratepayers.
Water Costs: Water costs are considered to be minimal in this
calculation as the District currently has a take or pay contract that
is not being exceeded.
Summary: Based on the evaluation performed, the benefit of
irrigation is speculative and the cost of irrigation exceeds the
possible benefit given a relatively long timeframe before the land
use or sale is determined. It is understood that in the event that
the land is sold, and the new owner of the land does not maintain the
golf course, the costs associated with the watering of the golf
course would have produced no value to offset the cost of irrigation.
FISCAL IMPACT: Joseph Beachem, Chief Financial Officer
Accepting the recommendation reduces costs and financial risk for the
District. The amount of the savings, as explained above, depends on
the final use of the property and the timeframe to finalize the use
or sale.
STRATEGIC GOAL:
Sound financial management of the District.
LEGAL IMPACT:
Undetermined at this time.
Attachments:
A) Letter from Jeffrey Woolson Dated 4-9-2018
B) Letter from Nicholas Spardy Dated 4-10-2018